ALBANY -- The New York State Comptroller's Office says it prevented an estimated $38 million dollars in what it calls "questionable" tax refunds from being mailed out.
Working with the state tax department, comptroller Thomas Di Napoli says his office halted payment of $26.3 million in refunds to corporate tax payers claiming big operating loses during the past year. DiNappoli says payments were stopped to companies claiming they lost money, but failed to supply adequate documentation. $11.8 million dollars in refunds destined for individuals were halted because of questionable deductions and other information on tax returns.
In his news release, DiNapoli said “It’s no shock that people make mistakes or even cheat on their taxes.What is shocking is how the scams range from the elaborate to the blatantly obvious. Deductions may be overstated or just plain phony. Some people falsely claim they have children when they don’t, while others use fake social security numbers or addresses. Whatever the scam, we’re working in cooperation with Commissioner Megna and his staff to sort through the honest mistakes and find the fraud to make sure only legitimate tax refunds get paid.”
